On December 1, 2015, Arther Company Had 200,000 Shares of $1

question 140

Essay

On December 1, 2015, Arther Company had 200,000 shares of $1 par value common stock issued and outstanding. The next day they declared and distributed a 50% stock dividend. The market value of the stock on that date was $9 per share. Provide the journal entry for the transaction.

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Definitions:

Relevant Others

Individuals or groups whose opinions, behaviors, or reactions are significant to one's self-concept and social standing.

Equity Model

A theory in social psychology that posits individuals assess fairness in relationships by comparing their inputs and outcomes to those of others.

Perceived Inequity

The feeling or assessment by individuals that they are not receiving a fair share of resources, recognition, or benefits compared to others.

Individual's Feelings

Personal emotions or affective states that are unique to an individual, reflecting their personal reactions or sentiments.